Copper Moon Trading 249 (Pty) Ltd

(Under Provisional Judicial Management)

Masters Ref: T7654/09

better known as:

*Celtis Plaza*

Holding Company:

Platinum Arch Investments 70 (Pty) Ltd

 

Documents on File:

 

1. Notice of Motion

2. Court Order

3. Provisional Certificate of Appointment

 

CELTIS PLAZA
COPPER MOON TRADING 249
INCOME STATEMENT as from 17/11/2009 to 19/02/2010
INCOME			EXPENSES
Vacancy factor 6,65%
Monthly rental income November 2009	65,651.05		Operational Expenses November 2009	-
			Once off Expenses November 2009	-
				-
Monthly rental income December 2009	468,217.99		Operational Expenses December 2009	212,298.81
			Once off Expenses December 2009	-
				212,298.81
Monthly rental income January 2010	391,095.16		Operational Expenses January 2010	458,617.10
			Once off Expenses January 2010(loan repayment)	21,297.36
				479,914.46
Monthly rental income February 2010	259,491.69		Operational Expenses February 2010	150,672.67
			Once off Expenses February 2010	140,816.05
			Once off Expenses - LDP Auditors (still to be paid)	285.00
				291,773.72
	1,184,455.89			983,986.99

 

1.                  There is amount of R 116 474 owed to Bluezone Property Investments (Pty) Ltd (in liquidation).

2.                  Bluezone Property Investments (Pty) Ltd (in liquidation) has a further claim for Rent Roll and Administration of R 557 572 against the company. This claim has already been proven at the first Creditors’ Meeting.

3.                  The company has a claim of R 7 225 954 against Bluezone and Tropical Paradise Trading 323 (Pty) Ltd.

4.                  The current account is held with FNB under acc number 62082493489 and is showing a zero balance. The Nedbank account is held under account number 901-591-8103 and has a credit balance of

            R 35 824.81 as on the 1^st of March 2010.

5.                  The property’s vacancy factor is 6.65% as on end February 2010.

6.                  The company’s liability for VAT at 30 November 2009 is estimated at R 113 590.

7.                  Total Immediate Obligations of the company : R 976 632.87

8.                  The bond account is held with Nedbank under bond account number 30082245 with an outstanding balance of R 13 636 762.92 as on the 5^th of February 2010. The bond repayment per month amounts

            to R 244 558.02 but the payment due for February 2010 is R 496 044.45.

9.                  It seems from documentation found in the offices of Bluezone Property Investments (Pty) Ltd (in liquidation) that the “loan” from the holding company was subordinated in favour of Nedbank.

10.             No provisional judicial management fees have been charged or collected from the company, neither has the Master of the High Court granted any fees to be collect by the judicial managers as on date of this report

Forensic Auditors’ Report Findings

The company was incorporated on 18 April 2005 under reference number 2005/011379/07. The company’s registered office appears to be that of its auditor, Loubser Du Plessis Incorporated,

and is given as De Waterkant Building, 10 Helderberg Street, Stellenbosch. Hennie Lamprecht is given as the sole director.

 

The company sole asset of significance is an office block called “Celtis Plaza” situated at Schoeman Street, Pretoria which it acquired in January 2006 at a cost of R 21 450 000. The property was valued by J.T. Seyffert in August 2006 for R 26 000 000 and formed the basis of a syndication arrangement by Bluezone at a value of R 27 003 600. The difference between the syndication value and the purchase price, namely R 5 553 600 was paid to Blue Zone and represented Bluezones

profit on the syndication gross of commissions paid to brokers for soliciting investors for the scheme, legal costs, a “revamp fund” of R 800 000, a “vacancy fund” of R 250 000 and incidentals.

 

On the 24 November 2005, the seller and the company agreed to an increase in the purchase

price of the property of R 500 000 as “liquidated damages” for the seller to agree to an extension

of time.

 

THE PROPERTY SYNDICATION AND THE ADMINISTRATION OF THE COMPANY POST SYNDICATION

 

The investment was geared to the extent of a mortgage bond by Nedbank for R 16 000 000 (the marketing document disclosed a bond of R 10 803 600). An amount of R 5 000 000 was paid towards the bond in August 2006 and withdrawn again by Bluezone in September 2006. The

amount was again subsequently repaid by Bluezone in November 2006, reducing the bond back to the intended level of R 10 000 000. The bond was then kept at a balance of R 10 000 000 (which reduced with time) until October 2008 when an amount of R 7 000 000 was withdrawn. The

details are as follows:

 

·        on 6 October 2008, an amount of R 7 000 000 was withdrawn from the bond account and deposited to the credit of the FNB current account of the Company;

·        on 7 October 2008, R 6 850 000 was transferred to the cheque account of  Tropical Paradise Trading 323 (Pty.) Ltd. (“TPT 323”) This company appears to be controlled (directly or indirectly) by Hennie Lamprecht;

·        R 6 500 000 was thereafter transferred from TPT 323 to the HCL Family Trust.

 

There appears to be no authority for the transfer which was clearly prejudicial to the shareholders.

 

Further, on syndication of the property, provision was made for a “revamp fund” of R 800 000

and a “vacancy fund” of R 250 000. These funds never existed and were withdrawn by Bluezone

to form part of Bluezone’s profits from the syndication.

 

The company has rendered a VAT return to September 2009, but is in arrear thereafter.

 

The company has rendered an income tax return up to the 2008 tax year. There is an amount outstanding on the income tax account of R 74 218.

 

 

FINANCIAL POSITION

 

·        The Celtis Plaza property has been valued by Messrs of Valuers & Appraisers at   

      R 26 500 000. This resulted in a write-down in the carrying value of the property of

      R 4 001 401 (after-tax);

·        There are claims against Bluezone and TPT 323 for advances to the amount of  

      R 7 225 954;

·        Unpaid Property and Admin expenses of R 48 180.82 have been accrued;

 

The company’s liabilities exceed its assets by R 3 898 091 and is therefore insolvent.

 

CONCLUSION

 

As with all the Bluezone syndications, the forensic auditors remain concerned that inadequate and incomplete disclosure was made to Investors (particularly with regard to amounts payable to Bluezone). In addition, it is  believed that there was no authority for the transfer to Tropical Paradise Trading 323, which amounted to theft.

 

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